Nigerian Breweries Plc has recordedÂ a minimal increase in its profits in itsÂ audited results for the year ended December 31, 2017. Specifically, the brewing firmâ€™s profit before tax rose marginallyÂ from N39.7 billion to N46.6 billion, just as profitÂ after tax was slightly fromÂ N28.4 million in 2016 to N33 million.
A company release weekend, showed that the firm recorded a mere 6.6 per cent rise in revenue to N334.6 billion, from N313.7 billion posted in 2016, while gross profit fell to N133.5 billion, from N135.5 billion in 2016.
However, other income jumped by 266 per cent to N2.2 billionÂ Â from N600 million, while net finance cost fell by 21 per cent from N13.2 billion to N10.5 billion.
Based on the performance, the directors have recommended a total dividend of N33 billion that translates to N4.13 per share. The recommended dividend is inclusive of interim dividend of N8 billion, which is N1.00Â per share earlier paid by the company in November 2017.Â
Â Â The Company Secretary/Legal Adviser, Nigerian Breweries Plc, Mr. Uaboi Agbebaku, said in the statement that â€œwhilst the foreign exchange situation improved in the course of the year, double digit inflation continued to impact both businesses and consumers.
â€œNevertheless, the company was able to end the year with improved results through continuous focus and execution of the twin agenda of cost leadership and market leadership supported by innovation.Â Â Whilst there are some early signs of improvement in the macro-economic condition, this is yet to be reflected in consumer confidence. The Board remains confident that the company has a clear strategy to deliver good return on investment to shareholders as part of its commitment to winning with Nigeria,â€ Agbebaku said.Â Â
Nigerian Breweries Plc reported a 27.3 per cent fall in its profit before tax for the 2016 financial year. Its 2016 group profit before tax tumbled to N39.62billion from N54.51billion recorded in the previous year.
The firmâ€™s group revenue for the 2016 financial year stood at N313.74bn compared to N293.91bn posted in 2015. In its audited financial statements for the year ended December 31, 2015 filed with the NSE, the brewing company had noted that its pre-tax profit fell then by 11.3 per cent to N54.51billion at the end of 2015.
Its revenue, however, rose to N293.91bn from N266bn at the end of the 2014 financial year.
Analysts at the FBNQuest had stated then that the decline in the PBT in the Q4 marked the sixth consecutive quarter of year-on-year decline for the company.
The analysts added: â€œFurther down the profit and loss account, PAT declined by a slimmer margin of six per cent mainly because the tax expense fell by 18 per cent y-o-y, driven by a lower effective tax rate of 29.9 per cent versus 32.8 per cent in the Q4 2014.â€
The brewing firmÂ Â recently appointed Mr.Â Â Jordi Borrut Bel as the substantiveÂ Â managing director/chief executive officerÂ Â to replace Mr. Johan Doyer, whoÂ Â served as MD/CEO on an interim basis since June 16, 2017.
The company hadÂ Â explained that Borrut Bel joined HeinekenÂ Â Spain in 1997 as Sales Representative and subsequently held increasingly senior management positions in different countries, first as Distribution Project Manager in Slovakia, Brand Manager in France and Trade Marketing Manager at the Head Office in The Netherlands. In 2006, he returned to Heineken Spain where he evolved in the organisation and eventually became the On-Premise and Distribution Director and a member of the Management Team.
â€œMr. Borrut Bel was appointed the MD of Brarudi S.A. in 2015 and has successfully led the company through a very turbulent period, strengthening the companyâ€™s route-to-market and launching successful innovations. The Board is confident that Mr. Borrut Belâ€™s track record and broad experience stand him in a very good position to drive Nigerian Breweries Plcâ€™ strategy and consolidate its leadership position in the Nigerian market,â€ the company said.